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2016 BMW X5 Lease Questions

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  • jes69tokjes69tok Member Posts: 14
    What is the MF, RV for X5 sDrive '16 36 mo/12k.

    thanks
  • MichaellMichaell Moderator Posts: 262,644
    jes69tok said:

    What is the MF, RV for X5 sDrive '16 36 mo/12k.

    thanks

    .00131 and 58%.

    $1500 option credit and $1500 loyalty credit.

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  • cmdabcmdab Member Posts: 21
    Hi, could someone please provide me with the money factor and residual on a 2016 X5 Xdrive35i, 36 months, 15k miles per year? Thanks.
  • kyfdxkyfdx Moderator Posts: 266,109
    cmdab said:

    Hi, could someone please provide me with the money factor and residual on a 2016 X5 Xdrive35i, 36 months, 15k miles per year? Thanks.

    .00131 MF and 55% residual. $1500 option credit.

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  • sjl225sjl225 Member Posts: 29
    Hello Kyfdx

    Can you please provide me the latest MF and residual for the 2016 X5 xDrive50i....36m/12k miles and any incentives, incl. loyalty. Thank you very much.
  • MichaellMichaell Moderator Posts: 262,644
    sjl225 said:

    Hello Kyfdx

    Can you please provide me the latest MF and residual for the 2016 X5 xDrive50i....36m/12k miles and any incentives, incl. loyalty. Thank you very much.

    .00131 and 57%. $1500 option credit and $1500 loyalty credit.

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  • sjl225sjl225 Member Posts: 29
    Thanks a bunch Michaell!
  • jes69tokjes69tok Member Posts: 14
    Hello;

    Is there a 39 mo. lease right now for X5 '16 ?
    Would the residual, MF be the same?
    Trying to figure out what's best, 36 mo. or 39 mo.
  • MichaellMichaell Moderator Posts: 262,644
    jes69tok said:

    Hello;

    Is there a 39 mo. lease right now for X5 '16 ?
    Would the residual, MF be the same?
    Trying to figure out what's best, 36 mo. or 39 mo.

    No 39 month program for 2016 X5 - 36/15 numbers are .00131 and 55% for xDrive, 56% for sDrive. $1500 option credit and $1500 loyalty credit, too.

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  • jes69tokjes69tok Member Posts: 14
    Hi; Can you please advise if this is a good option to do;

    Dealer offering early trade-in or pull ahead from them.
    My Lease would be up 4/2/16 and current payment 665 a mo. so 3 payments left.

    '16 X5 35i
    MSRP: 64,245
    36mo./10k
    MF: .00082 with MSD's
    RV: 58%
    Tax, tags, fees out of pocket
    Monthly would be $635

    Sell Price 55,335 BUT
    My last 3 payments which total 1,995 would be added in so
    Total would be 57,330
    giving me a payment of 635 a mo.

    Is it a good idea to roll those payments in to get this months incentives which is 3k?
    It sounds like a great price at 55,335 but the 2k of payments rolled in does not.

    Any advise is greatly appreciated!!!
  • MichaellMichaell Moderator Posts: 262,644
    jes69tok said:

    Hi; Can you please advise if this is a good option to do;

    Dealer offering early trade-in or pull ahead from them.
    My Lease would be up 4/2/16 and current payment 665 a mo. so 3 payments left.

    '16 X5 35i
    MSRP: 64,245
    36mo./10k
    MF: .00082 with MSD's
    RV: 58%
    Tax, tags, fees out of pocket
    Monthly would be $635

    Sell Price 55,335 BUT
    My last 3 payments which total 1,995 would be added in so
    Total would be 57,330
    giving me a payment of 635 a mo.

    Is it a good idea to roll those payments in to get this months incentives which is 3k?
    It sounds like a great price at 55,335 but the 2k of payments rolled in does not.

    Any advise is greatly appreciated!!!

    The $2000 being rolled in is adding about $55/mo to your payment - but, if they are talking about a pull-ahead, then the remaining payments ought to be waived.

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  • jes69tokjes69tok Member Posts: 14
    Michaell said:

    jes69tok said:

    Hi; Can you please advise if this is a good option to do;

    Dealer offering early trade-in or pull ahead from them.
    My Lease would be up 4/2/16 and current payment 665 a mo. so 3 payments left.

    '16 X5 35i
    MSRP: 64,245
    36mo./10k
    MF: .00082 with MSD's
    RV: 58%
    Tax, tags, fees out of pocket
    Monthly would be $635

    Sell Price 55,335 BUT
    My last 3 payments which total 1,995 would be added in so
    Total would be 57,330
    giving me a payment of 635 a mo.

    Is it a good idea to roll those payments in to get this months incentives which is 3k?
    It sounds like a great price at 55,335 but the 2k of payments rolled in does not.

    Any advise is greatly appreciated!!!

    The $2000 being rolled in is adding about $55/mo to your payment - but, if they are talking about a pull-ahead, then the remaining payments ought to be waived.
    Basically it's not pull ahead. They are saying that they are discounting the new car far enough to absorb the left over payments. They would not be able to do this in April since the 3k incentives would not be available and I would get worse numbers then.
    Not sure about April incentives....if any?
    Does 55,335 sell price sound like an over the top discount to 64,245 MSRP on a 2016 X5 35i ?

  • MichaellMichaell Moderator Posts: 262,644
    jes69tok said:

    Michaell said:

    jes69tok said:

    Hi; Can you please advise if this is a good option to do;

    Dealer offering early trade-in or pull ahead from them.
    My Lease would be up 4/2/16 and current payment 665 a mo. so 3 payments left.

    '16 X5 35i
    MSRP: 64,245
    36mo./10k
    MF: .00082 with MSD's
    RV: 58%
    Tax, tags, fees out of pocket
    Monthly would be $635

    Sell Price 55,335 BUT
    My last 3 payments which total 1,995 would be added in so
    Total would be 57,330
    giving me a payment of 635 a mo.

    Is it a good idea to roll those payments in to get this months incentives which is 3k?
    It sounds like a great price at 55,335 but the 2k of payments rolled in does not.

    Any advise is greatly appreciated!!!

    The $2000 being rolled in is adding about $55/mo to your payment - but, if they are talking about a pull-ahead, then the remaining payments ought to be waived.
    Basically it's not pull ahead. They are saying that they are discounting the new car far enough to absorb the left over payments. They would not be able to do this in April since the 3k incentives would not be available and I would get worse numbers then.
    Not sure about April incentives....if any?
    Does 55,335 sell price sound like an over the top discount to 64,245 MSRP on a 2016 X5 35i ?

    That is a good discount on an X5, for sure.

    Nobody knows what the incentives will be 4 months from now.

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  • omar11218omar11218 Member Posts: 7
    I see a few people mentioning they are getting tax credits. Im in NY and never heard of such discount can someone clarify? Thanks
  • kyfdxkyfdx Moderator Posts: 266,109
    omar11218 said:

    I see a few people mentioning they are getting tax credits. Im in NY and never heard of such discount can someone clarify? Thanks

    It's a Texas thing. Texas charges tax on the full selling price. Since the leasing bank owns the car, they get trade-in tax credits, and then pass them along to their customers.

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  • omar11218omar11218 Member Posts: 7
    I wanted to know if I am getting a good deal on 2016 x5 xdrive 35i. The cars msrp is 69,795. They are asking for 1,428 up front includes first payment and dmv fees 36/10 788 a month taxes are included in the payment. 
  • MichaellMichaell Moderator Posts: 262,644
    omar11218 said:

    I wanted to know if I am getting a good deal on 2016 x5 xdrive 35i. The cars msrp is 69,795. They are asking for 1,428 up front includes first payment and dmv fees 36/10 788 a month taxes are included in the payment. 

    Need to know the selling price or net cap cost; also, the state and tax rate.

    And, the full breakdown of the $1428 due at signing.

    .00131 and 58% are the lease numbers for 36/10.

    $1000 loyalty credit and $1000 Happier Holiday Adder.

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  • deenxdeenx Member Posts: 125
    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?
  • MichaellMichaell Moderator Posts: 262,644
    deenx said:

    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?

    My guess .. and, it's only a guess ... is that the TMV includes the incentives.

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  • deenxdeenx Member Posts: 125
    Michaell said:

    deenx said:

    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?

    My guess .. and, it's only a guess ... is that the TMV includes the incentives.
    OK... thanks... so can someone tell me if you iphone lease calculator is working correctly?

    Using MSRP of 66870 and Cap Cost of 62312 and the X5's MF of .00131 and 58% residual... forgetting everything else... that yields $785.98/month. Obviously there are other fees and taxes... but for just the depreciation and financing part of the equation... is this correct?
  • kyfdxkyfdx Moderator Posts: 266,109
    deenx said:

    Michaell said:

    deenx said:

    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?

    My guess .. and, it's only a guess ... is that the TMV includes the incentives.
    OK... thanks... so can someone tell me if you iphone lease calculator is working correctly?

    Using MSRP of 66870 and Cap Cost of 62312 and the X5's MF of .00131 and 58% residual... forgetting everything else... that yields $785.98/month. Obviously there are other fees and taxes... but for just the depreciation and financing part of the equation... is this correct?
    Yes.. $785.98 is correct with those numbers.

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  • deenxdeenx Member Posts: 125
    kyfdx said:

    deenx said:

    Michaell said:

    deenx said:

    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?

    My guess .. and, it's only a guess ... is that the TMV includes the incentives.
    OK... thanks... so can someone tell me if you iphone lease calculator is working correctly?

    Using MSRP of 66870 and Cap Cost of 62312 and the X5's MF of .00131 and 58% residual... forgetting everything else... that yields $785.98/month. Obviously there are other fees and taxes... but for just the depreciation and financing part of the equation... is this correct?
    Yes.. $785.98 is correct with those numbers.
    Thanks... so my next question is more subtle I guess... how do I determine a "good deal"? Are the Edmunds prices paid a good target? Even if you hit that target, how do I know if it's a good lease? The last time I leased a car was in 2013 and it sure seems lease payments are much higher. Is that the case?
  • MichaellMichaell Moderator Posts: 262,644
    deenx said:

    kyfdx said:

    deenx said:

    Michaell said:

    deenx said:

    Does the avg prices paid that Edmunds displays on their pricing pages contain the incentives? I'm looking at a 2016 BMW X5. The MSRP of $66870 has an avg price paid of $62312. If I then subtract the loyalty credit and happier holiday incentive would give $60312. From there... I'd use .00131 and 58% for a 36/10 lease calculation. Is the right way to go about it?

    My guess .. and, it's only a guess ... is that the TMV includes the incentives.
    OK... thanks... so can someone tell me if you iphone lease calculator is working correctly?

    Using MSRP of 66870 and Cap Cost of 62312 and the X5's MF of .00131 and 58% residual... forgetting everything else... that yields $785.98/month. Obviously there are other fees and taxes... but for just the depreciation and financing part of the equation... is this correct?
    Yes.. $785.98 is correct with those numbers.
    Thanks... so my next question is more subtle I guess... how do I determine a "good deal"? Are the Edmunds prices paid a good target? Even if you hit that target, how do I know if it's a good lease? The last time I leased a car was in 2013 and it sure seems lease payments are much higher. Is that the case?
    The prices here are good targets, but they are an average, and ideally you want to be below that.

    We don't track selling prices - read back through the last page or two of this discussion to see what others have been able to negotiate.

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  • omadao24omadao24 Member Posts: 14
    I just wanted to confirm the current MF & RV on a 2016 X5 Xdrive 35i:

    MF: 0.00131
    RV: 57%
  • deenxdeenx Member Posts: 125
    omadao24 said:

    I just wanted to confirm the current MF & RV on a 2016 X5 Xdrive 35i:

    MF: 0.00131
    RV: 57%

    Thanks!.. I leased an X5 in 2013.. and it's quite clear leases are much higher than they were then. I'm not crazy about that at all.
  • MichaellMichaell Moderator Posts: 262,644
    omadao24 said:

    I just wanted to confirm the current MF & RV on a 2016 X5 Xdrive 35i:

    MF: 0.00131
    RV: 57%

    Those numbers are correct for a 36 month, 12,000 miles per year lease.

    There is $1500 option credit and $1500 loyalty credit also available

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  • MichaellMichaell Moderator Posts: 262,644
    deenx said:

    omadao24 said:

    I just wanted to confirm the current MF & RV on a 2016 X5 Xdrive 35i:

    MF: 0.00131
    RV: 57%

    Thanks!.. I leased an X5 in 2013.. and it's quite clear leases are much higher than they were then. I'm not crazy about that at all.
    X5's are some of the most popular vehicles, based on the amount of inventory available at the dealer. BMW apparently sees no need to make them attractive for leasing, yet folks continue to lease them.

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  • deenxdeenx Member Posts: 125
    Michaell said:

    deenx said:

    omadao24 said:

    I just wanted to confirm the current MF & RV on a 2016 X5 Xdrive 35i:

    MF: 0.00131
    RV: 57%

    Thanks!.. I leased an X5 in 2013.. and it's quite clear leases are much higher than they were then. I'm not crazy about that at all.
    X5's are some of the most popular vehicles, based on the amount of inventory available at the dealer. BMW apparently sees no need to make them attractive for leasing, yet folks continue to lease them.
    agreed.... so maybe it's time to try something else. I doubt 2016 will be as good for auto sales as 2015.
  • redcoat2405redcoat2405 Member Posts: 1
    Thanks for all the great information here. All the comments and information posted here must be saving thousands for everyone who reads this forum. I know I will be saving and I appreciate people taking the time to post comments and questions.

    I'm looking to lease a 2016 X5 this month. I was planning on placing the order in December for delivery in January. The only problem is the dealer is telling me that I would not get the $1500 Owner Loyalty rebate because I won't take delivery before Dec 31.

    Does anyone know if you can lock in rebates for a build order to be delivered in January?

    Also, the dealer is telling me that the X5 is going up $800 Jan 1st. I'm told I can lock in the vehicle price price now so I don't get hit with another $800, but does anyone know if this is true?
  • MichaellMichaell Moderator Posts: 262,644

    Thanks for all the great information here. All the comments and information posted here must be saving thousands for everyone who reads this forum. I know I will be saving and I appreciate people taking the time to post comments and questions.

    I'm looking to lease a 2016 X5 this month. I was planning on placing the order in December for delivery in January. The only problem is the dealer is telling me that I would not get the $1500 Owner Loyalty rebate because I won't take delivery before Dec 31.

    Does anyone know if you can lock in rebates for a build order to be delivered in January?

    Also, the dealer is telling me that the X5 is going up $800 Jan 1st. I'm told I can lock in the vehicle price price now so I don't get hit with another $800, but does anyone know if this is true?

    I don't believe that incentives will carry forward for ordered vehicles. However, I do believe that you can either "lock in" the current program information or use the (as yet unknown) program information for the month in which you take delivery. So, if you choose to use the December information, you'll qualify for the rates and incentives from this month - in their entirety. Cannot mix and match numbers.

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  • tin369tin369 Member Posts: 5
    Here is a quote that I got from a dealer, can you guys review and let me know if this looks good or not.

    The deal is BMW of Mt Laurel, NJ

    BMW X5

    MSRP - $62,995
    Discount - $6769
    Selling price - $56,226
    Doc fee - $309
    Licence/title -$$150
    Acquisition fees- $925
    Tax on collected item - $2257
    Capitalized initial fees - $566
    Total Cap - $60,434
    Trade allowance - $4400
    Rebate savings- $1500
    Net cap - $54,534


    Base payment - $556
    Montly tax- $12

    Residual 58%
    10,000

    7 MSD - $4200

    I have a trade in for which they are offering $7000.

    My state has a upfront 4% tax and the remaining 0.25 is every month.

    I dont understand the trade allowance of $4400 that they put in there.
  • MichaellMichaell Moderator Posts: 262,644
    tin369 said:

    Here is a quote that I got from a dealer, can you guys review and let me know if this looks good or not.

    The deal is BMW of Mt Laurel, NJ

    BMW X5

    MSRP - $62,995
    Discount - $6769
    Selling price - $56,226
    Doc fee - $309
    Licence/title -$$150
    Acquisition fees- $925
    Tax on collected item - $2257
    Capitalized initial fees - $566
    Total Cap - $60,434
    Trade allowance - $4400
    Rebate savings- $1500
    Net cap - $54,534


    Base payment - $556
    Montly tax- $12

    Residual 58%
    10,000

    7 MSD - $4200

    I have a trade in for which they are offering $7000.

    My state has a upfront 4% tax and the remaining 0.25 is every month.

    I dont understand the trade allowance of $4400 that they put in there.

    There are two deals here - the lease and the trade.

    Leaving the trade aside, I get $700/mo if I use $58,934 as the net cap (total cap - rebate).

    Is the trade equity being used as down payment or for MSD monies? If the former, then the $4400 of equity would reduce your payment $122/mo, which is still more than the payment you've been quoted.

    Something seems off here. Have them rerun the numbers without the trade - how much cash is due at signing (MSD + taxes & fees + cap cost reduction)?

    The $568/mo certainly looks good, but there may be things going on that we don't see.

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  • tin369tin369 Member Posts: 5
    The way I understood is the discount is $6769+$1500 for loyalty credit and another $500 for fleet discount which will be added on the final deal.

    yes the trade is being used for MSD (7*600 = $4200)
    and tax, tags and acquisition fees which is
    dealer fees $309
    Licence/title -$$150
    Acquisition fees- $925
    Tax on collected item - $2257
    First month payment - $566

    Total - $4207
    + (7*600) - $4200

    $8407 should be out of pocket

    So it should be

    MSRP - $62,995
    Discount - $6769
    Rebate savings- $1500
    Fleet discount -$500
    Selling price - $54,226

    Now is this supposed to be the net cap or do they have to add the acquisition fees to it , even if i am paying that out of pocket?


    Residual 58%
    10,000

    The money factor will be 0.0006 which includes employees discount so it drops to 0.0008.

    They also said that in Delaware you get a credit for your trade. Not sure how that is calculated.

    Any help would be appreciated.
  • MichaellMichaell Moderator Posts: 262,644
    tin369 said:

    The way I understood is the discount is $6769+$1500 for loyalty credit and another $500 for fleet discount which will be added on the final deal.

    yes the trade is being used for MSD (7*600 = $4200)
    and tax, tags and acquisition fees which is
    dealer fees $309
    Licence/title -$$150
    Acquisition fees- $925
    Tax on collected item - $2257
    First month payment - $566

    Total - $4207
    + (7*600) - $4200

    $8407 should be out of pocket

    So it should be

    MSRP - $62,995
    Discount - $6769
    Rebate savings- $1500
    Fleet discount -$500
    Selling price - $54,226

    Now is this supposed to be the net cap or do they have to add the acquisition fees to it , even if i am paying that out of pocket?

    Residual 58%
    10,000

    The money factor will be 0.0006 which includes employees discount so it drops to 0.0008.

    They also said that in Delaware you get a credit for your trade. Not sure how that is calculated.

    Any help would be appreciated.

    Do you owe anything on the trade? If I understand it correctly, the $7000 of trade equity is going to the MSD ($4200) and a majority of the up front taxes and fees ($4207) - so, you'd be writing the dealer a check for $1407.

    Acquisition fee cannot be charged twice - if you are paying it up front, then it can't be added to your net cap cost.

    If the taxes are calculated and collected up front, then the trade equity would reduce that obligation. Does Delaware calculate sales tax for a lease for the entire selling price or on the sum of the monthly payments?

    I don't understand your statement about the money factor. .0006 is less than .0008.

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  • deenxdeenx Member Posts: 125
    tin369 said:

    Here is a quote that I got from a dealer, can you guys review and let me know if this looks good or not.

    The deal is BMW of Mt Laurel, NJ

    BMW X5

    MSRP - $62,995
    Discount - $6769
    Selling price - $56,226
    Doc fee - $309
    Licence/title -$$150
    Acquisition fees- $925
    Tax on collected item - $2257
    Capitalized initial fees - $566
    Total Cap - $60,434
    Trade allowance - $4400
    Rebate savings- $1500
    Net cap - $54,534


    Base payment - $556
    Montly tax- $12

    Residual 58%
    10,000

    7 MSD - $4200

    I have a trade in for which they are offering $7000.

    My state has a upfront 4% tax and the remaining 0.25 is every month.

    I dont understand the trade allowance of $4400 that they put in there.

    That is one heck of a discount in my opinion. I'm in Florida and dealers are letting me walk out of the store with my offers of discounts much less than that.
  • tin369tin369 Member Posts: 5


    Do you owe anything on the trade? If I understand it correctly, the $7000 of trade equity is going to the MSD ($4200) and a majority of the up front taxes and fees ($4207) - so, you'd be writing the dealer a check for $1407.

    Acquisition fee cannot be charged twice - if you are paying it up front, then it can't be added to your net cap cost.

    If the taxes are calculated and collected up front, then the trade equity would reduce that obligation. Does Delaware calculate sales tax for a lease for the entire selling price or on the sum of the monthly payments?

    I don't understand your statement about the money factor. .0006 is less than .0008.

    I think you are correct that how I would like to do it, I don't owe anything on the trade so I can get the $7000 check from the dealer and then write them a check for $8407 which is tax, tags, fees, 7 MSD.


    The way it was told to me is that in Delaware they charge 4% upfront tax and then the remaining 0.25 on the monthly payments.

    The money factor would come down to 0.0008 for doing 7 MSD and It would come down even more to 0.0006 because I can get an employer discount through BMW and my companies partnership.



  • MichaellMichaell Moderator Posts: 262,644
    tin369 said:

    Do you owe anything on the trade? If I understand it correctly, the $7000 of trade equity is going to the MSD ($4200) and a majority of the up front taxes and fees ($4207) - so, you'd be writing the dealer a check for $1407.

    Acquisition fee cannot be charged twice - if you are paying it up front, then it can't be added to your net cap cost.

    If the taxes are calculated and collected up front, then the trade equity would reduce that obligation. Does Delaware calculate sales tax for a lease for the entire selling price or on the sum of the monthly payments?

    I don't understand your statement about the money factor. .0006 is less than .0008.

    I think you are correct that how I would like to do it, I don't owe anything on the trade so I can get the $7000 check from the dealer and then write them a check for $8407 which is tax, tags, fees, 7 MSD.


    The way it was told to me is that in Delaware they charge 4% upfront tax and then the remaining 0.25 on the monthly payments.

    The money factor would come down to 0.0008 for doing 7 MSD and It would come down even more to 0.0006 because I can get an employer discount through BMW and my companies partnership.


    Overall, it looks like a pretty killer deal. I was just trying to understand the mechanics behind it.

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  • jayd9931jayd9931 Member Posts: 2
    edited December 2015
    I have a few questions and am qualifying all this by saying I am completely new to car buying and car leasing.

    1) I don't understand why the money factors people are posting here appear to be so high. According to the BMW website it looks like the x5 sDrive35i is being offered for lease at $649/month for 36 months with 10k miles/year with an MSRP of $60,295. It requires $5,074 cash due at signing, which includes a $3,500 down payment. This figure does not include the $925 acquisition fee, but when I run the numbers at a capitalized cost of $61,220 (this is just the MSRP plus the $925 acquisition fee) it looks like for this vehicle to hit a $649/mo payment the money factor would have to be 0.0005. But I see people quoting 0.00131 money factors for an x5. How is this possible?

    2) If I would like to lease this x5, does this mean that I can negotiate the MSRP of $60,295 down so that my monthly payment becomes lower than $649/mo without changing the down payment or cash due at signing? Using the same money factor of 0.0005 this means that if I negotiate the price of the car down by 5% this in turn will bring down the capitalized cost down to $58,159. This will cause my monthly payment to drop from $649/mo to $562.37. That seems great. Am I thinking about this correctly?

    3) I am also looking at other vehicles with lease offers, such as the MB GLE350 which has a monthly payment of $579 with cash due at signing of $5,173. Can I do the math similarly? Is this how I should be thinking about negotiating a lease? Look at the lease specials that are posted on the website of the car manufacturers, back into what the money factor is, and then try to negotiate the MSRP down so that I can bring down the monthly payment even lower than what is advertised on the manufacturers' websites?

    Thanks in advance for the help!
  • kyfdxkyfdx Moderator Posts: 266,109
    jayd9931 said:

    I have a few questions and am qualifying all this by saying I am completely new to car buying and car leasing.

    1) I don't understand why the money factors people are posting here appear to be so high. According to the BMW website it looks like the x5 sDrive35i is being offered for lease at $649/month for 36 months with 10k miles/year with an MSRP of $60,295. It requires $5,074 cash due at signing, which includes a $3,500 down payment. This figure does not include the $925 acquisition fee, but when I run the numbers at a capitalized cost of $61,220 (this is just the MSRP plus the $925 acquisition fee) it looks like for this vehicle to hit a $649/mo payment the money factor would have to be 0.0005. But I see people quoting 0.00131 money factors for an x5. How is this possible?

    2) If I would like to lease this x5, does this mean that I can negotiate the MSRP of $60,295 down so that my monthly payment becomes lower than $649/mo without changing the down payment or cash due at signing? Using the same money factor of 0.0005 this means that if I negotiate the price of the car down by 5% this in turn will bring down the capitalized cost down to $58,159. This will cause my monthly payment to drop from $649/mo to $562.37. That seems great. Am I thinking about this correctly?

    3) I am also looking at other vehicles with lease offers, such as the MB GLE350 which has a monthly payment of $579 with cash due at signing of $5,173. Can I do the math similarly? Is this how I should be thinking about negotiating a lease? Look at the lease specials that are posted on the website of the car manufacturers, back into what the money factor is, and then try to negotiate the MSRP down so that I can bring down the monthly payment even lower than what is advertised on the manufacturers' websites?

    Thanks in advance for the help!

    1) The CAP cost on the advertised lease isn't going to be MSRP + acq.fee. There is a dealer discount assumed and a factory incentive, that may not be disclosed in the ad.

    2) See #1. There is already a discount assumed to get that advertised price. There is also no guarantee that you can even negotiate that deal, let alone a better one (though, you might).

    3) Advertised deals might give you a starting point, as to what the monthly payment might be. But, you negotiate a lease, just like a purchase. Negotiate a low selling price, and start from there.

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  • MichaellMichaell Moderator Posts: 262,644
    kyfdx said:

    jayd9931 said:

    I have a few questions and am qualifying all this by saying I am completely new to car buying and car leasing.

    1) I don't understand why the money factors people are posting here appear to be so high. According to the BMW website it looks like the x5 sDrive35i is being offered for lease at $649/month for 36 months with 10k miles/year with an MSRP of $60,295. It requires $5,074 cash due at signing, which includes a $3,500 down payment. This figure does not include the $925 acquisition fee, but when I run the numbers at a capitalized cost of $61,220 (this is just the MSRP plus the $925 acquisition fee) it looks like for this vehicle to hit a $649/mo payment the money factor would have to be 0.0005. But I see people quoting 0.00131 money factors for an x5. How is this possible?

    2) If I would like to lease this x5, does this mean that I can negotiate the MSRP of $60,295 down so that my monthly payment becomes lower than $649/mo without changing the down payment or cash due at signing? Using the same money factor of 0.0005 this means that if I negotiate the price of the car down by 5% this in turn will bring down the capitalized cost down to $58,159. This will cause my monthly payment to drop from $649/mo to $562.37. That seems great. Am I thinking about this correctly?

    3) I am also looking at other vehicles with lease offers, such as the MB GLE350 which has a monthly payment of $579 with cash due at signing of $5,173. Can I do the math similarly? Is this how I should be thinking about negotiating a lease? Look at the lease specials that are posted on the website of the car manufacturers, back into what the money factor is, and then try to negotiate the MSRP down so that I can bring down the monthly payment even lower than what is advertised on the manufacturers' websites?

    Thanks in advance for the help!

    1) The CAP cost on the advertised lease isn't going to be MSRP + acq.fee. There is a dealer discount assumed and a factory incentive, that may not be disclosed in the ad.

    2) See #1. There is already a discount assumed to get that advertised price. There is also no guarantee that you can even negotiate that deal, let alone a better one (though, you might).

    3) Advertised deals might give you a starting point, as to what the monthly payment might be. But, you negotiate a lease, just like a purchase. Negotiate a low selling price, and start from there.
    And, recognize that on these national or regional offers, the down payment is meant to make for a more attractive lease payment.

    However, we don't recommend making one - if the car is stolen or totaled, you lose that money.

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  • 5genlx945genlx94 Member Posts: 5
    Hi,

    I have recently been debating about getting an X5. Currently own an 2013 RX350. Really new to this lease idea, so trying to understand if it makes sense to trade in and start a lease or sell private then start a lease?

    If I trade in the car does value that go towards lowering the capitalized cost or does that trade in go towards paying the lease payments?

    Thanks in Advance.
  • MichaellMichaell Moderator Posts: 262,644
    5genlx94 said:

    Hi,

    I have recently been debating about getting an X5. Currently own an 2013 RX350. Really new to this lease idea, so trying to understand if it makes sense to trade in and start a lease or sell private then start a lease?

    If I trade in the car does value that go towards lowering the capitalized cost or does that trade in go towards paying the lease payments?

    Thanks in Advance.

    If you have equity in your trade, you could use that against the cap cost, but we don't recommend it. If the new car is stolen or totaled, you would lose that money.

    Instead consider using the equity for multiple security deposits to 'buy down' the money factor and lower your payment. The difference is that you get the MSD monies back at the end of the lease.

    Another option is to simply have the dealer cut you a check for the equity.

    You may get more for your car if you sell privately, but there may be tax advantages to trading in, depending on what state you live in.

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  • 5genlx945genlx94 Member Posts: 5
    Michaell said:

    5genlx94 said:

    Hi,

    I have recently been debating about getting an X5. Currently own an 2013 RX350. Really new to this lease idea, so trying to understand if it makes sense to trade in and start a lease or sell private then start a lease?

    If I trade in the car does value that go towards lowering the capitalized cost or does that trade in go towards paying the lease payments?

    Thanks in Advance.

    If you have equity in your trade, you could use that against the cap cost, but we don't recommend it. If the new car is stolen or totaled, you would lose that money.

    Instead consider using the equity for multiple security deposits to 'buy down' the money factor and lower your payment. The difference is that you get the MSD monies back at the end of the lease.

    Another option is to simply have the dealer cut you a check for the equity.

    You may get more for your car if you sell privately, but there may be tax advantages to trading in, depending on what state you live in.
    Thanks Michaell. Looks like MSD or getting that check would be the better options. Doesn't look like NJ has any tax benefits for a trade in.
  • alexkoperalexkoper Member Posts: 25
    Hello, I'm ordering a new X5 40E for my Wife. I was offered invoice less $3500. I'm a returning BMW customer. I was offered MF of .00131 and residual of 59% on 24 months for 15k/year. Sound good? Dealer says I can take advantage of better residual/MF of either now (when I was approved) or the month that I take delivery. I noticed earlier on the page that there are some discounts, so the $3500 back of invoice doesn't seem like as much of a good deal as I thought, but still seemed ok to me. I put a deposit down of $1000 today but I'm not obligated I'm told. Would love your feedback on this deal. I am in Southern CA. Also, wondering what the "deal" is with MSDs - is it a good deal? I'm happy to put cash down as part of MSD if you think it's worthwhile. Does this get rid of the GAP insurance that's included with leases in CA? Thanks so much.
  • MichaellMichaell Moderator Posts: 262,644
    alexkoper said:

    Hello, I'm ordering a new X5 40E for my Wife. I was offered invoice less $3500. I'm a returning BMW customer. I was offered MF of .00131 and residual of 59% on 24 months for 15k/year. Sound good? Dealer says I can take advantage of better residual/MF of either now (when I was approved) or the month that I take delivery. I noticed earlier on the page that there are some discounts, so the $3500 back of invoice doesn't seem like as much of a good deal as I thought, but still seemed ok to me. I put a deposit down of $1000 today but I'm not obligated I'm told. Would love your feedback on this deal. I am in Southern CA. Also, wondering what the "deal" is with MSDs - is it a good deal? I'm happy to put cash down as part of MSD if you think it's worthwhile. Does this get rid of the GAP insurance that's included with leases in CA? Thanks so much.

    I confirm the .00131 MF and 59% residual for 24/15.

    I also see $1500 option credit, $1500 loyalty credit and $3000 lease credit for this model, so I agree that your offer might have some room to improve.

    MSDs can be used to 'buy down' the MF - does not affect the GAP insurance.

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  • deenxdeenx Member Posts: 125
    Are we suggesting that the xDrive40e is a better deal because there are more discounts at this time?
  • MichaellMichaell Moderator Posts: 262,644
    deenx said:

    Are we suggesting that the xDrive40e is a better deal because there are more discounts at this time?

    It is the only trim level of the X5 with the $3000 lease cash. Draw your own conclusions...

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  • row2015row2015 Member Posts: 1
    Since my sister owns 535, will I qualify for $1500 Loyalty credit? Thanks
  • MichaellMichaell Moderator Posts: 262,644
    row2015 said:

    Since my sister owns 535, will I qualify for $1500 Loyalty credit? Thanks

    Perhaps ... if you share the same address. Otherwise, no.

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  • stevesmith1stevesmith1 Member Posts: 2
    Is there any loyalty cash on an x5 5.0 ?
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